India, Sept. 15 -- The National Payments Corporation of India (NPCI) announced on Tuesday that a 0.4% fee will be charged on Unified Payments Interface (UPI) transactions to certain merchants when the transaction value exceeds Rs.2,000. It also clarified that customers will not have to pay any fee for making UPI payments under the revised system.

As per the new rules, Person-to-Merchant (P2M) UPI payments above Rs.2,000 will attract a 0.4 per cent Merchant Discount Rate (MDR). However, the charge will not exceed Rs.300 for a single transaction.

MDR refers to the fee charged to merchants by banks and payment service providers for processing digital payments. The amount depends on factors such as the payment method, the type of merchant, ...